Speaking to local Arabic language media, the head of the Higher Committee for Monitoring Bakeries, Ali Abu Azza, explained the problems faced by bakery owners that led some to raise the price of bread.
High price and fluctuating availability of flour
Abu Azza stated that bakery owners are not responsible for the price hikes. He said, since the beginning of the year, bakeries have been suffering from the high price and fluctuating availability of flour, without any solutions or support being offered by the relevant authorities.
Reduction of subsidised diesel quotas to bakeries
He added that the decision to reduce the subsidised diesel quota allocated to bakeries by 50% since last April has exacerbated the situation, at a time when bakeries need to cover power outages and expand production instead of having their supplies reduced.
Prices of raw materials and services increased by 150%
The prices of raw materials and services have increased significantly. Yeast and packaging prices have risen by more than 150%, in addition to increased water costs and a doubling of flour transportation and labour costs, Abu Azza added.
Bakeries seeking stable exchange rate
He said the bakery owner buys his operational needs from the parallel market like everyone else, denying that bakery owners are seeking subsidies. Rather, he said they are asking the government to stabilize the exchange rate and the value of the dinar so that everyone knows their rights and so that bakeries can adhere to price stability.
Bakeries: adjust prices or close down
Finally, he warned that bakeries are now in a real struggle for survival. He said they either adjust the weights and prices of bread to cover operating costs and meet debt obligations, or they close completely and abandon the profession.
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